Articles and News
INDUSTRY NEWS: GOLD PRICES PUSH PLATINUM SALES UP; JBT SAYS SMALLER BUT STRONGER INDUSTRY, MORE February 02, 2012 (0 comments)
Priced Below Gold, Platinum Sales Surge
New York—Platinum engagement ring sales jumped during the holiday season, according to a recent release from the Platinum Guild International. Retailers attest the rise to platinum’s price per ounce, which, since August, has traded lower than gold. In the past, the metal’s higher price-per-ounce than gold deterred some consumers.
At Long’s Jewelers in Massachusetts, platinum sales jumped 20% over the holidays. President Craig Rottenberg attributes it to a radio advertisement created specifically to educate consumers about metal pricing
The ad says, “Fort he first time in recent history, an ounce of platinum actually costs less than an ounce of gold. That means platinum and gold [engagement ring] styles are priced closer than ever and there’s never been a better time to make the best choice at the best value.”
Other retailers also told PGI that the rising price of gold has made platinum an easier sale than ever, even in stores where consumers already were inclined toward the metal.
In a recent survey, Platinum Guild International’s Preferred Retail Partners cited price as the second-most positive factor affecting platinum sales, following the metal’s attributes.
Click here to hear Long’s radio spot for platinum.
JBT Shows Industry Smaller But Stronger
Warwick, RI—The latest figures from the Jewelers Board of Trade show the U.S. jewelry industry contracted slightly in 2011, but it’s in a stronger financial position than a year ago. While there were slightly fewer businesses in operation, there were far fewer bankruptcies and credit claims in 2011 than 2010.
The number of North American retailers dipped 1%, with a total of 224 stores closing in 2011. Wholesalers declined 1.5%, losing 67 firms, and the number of manufacturers dropped 2.3% from 3,253 in December 2010 to 3,179 in December 2011. But the number of bankruptcies among retailers fell 35.3%, and among manufacturers, there were 69.2% fewer than in 2010.
There were 24.2% fewer claims placed with JBT last year than in 2010, and the amount per claim also decreased by almost $1,100 from $7,698 in 2010 to $6,623 in 2011, a drop of 14%. Additionally, the number of business whose JBT rating decreased fell 16%, the second year in a row that more businesses saw their JBT rating rise than drop.
NRF Predicts Strong Valentine’s Day, Big Jewelry Growth
New York—According to a survey conducted by BIGinsight for the National Retail Federation, consumers are planning to increase Valentine’s Day spending over last year’s figures. This year, says the NRF 2012 Valentine’s Day Consumer Intentions and Actions Survey, the average spend for the holiday will grow 8.5%, to $126, vs. last year’s $116. This is the highest in the survey’s history.
“As one of the biggest gift-giving holidays of the year, it’s encouraging that consumers are still exhibiting the desire to spend on discretionary gift items, a strong indication our economy continues to move in the right direction,” said NRF president and CEO Matthew Shay.
Among survey respondents, eight out of 10 indicated they plan to buy jewelry, the highest percent in the survey’s history. The second-most popular gift will be that of choice, i.e., gift cards. Half of all respondents plan to buy candy, and slightly more than one-third each will buy flowers and/or treat their special someone to a nice evening out.
Last Minute Good for Jewelry, Luxury Online Sales
New York—Late December was a strong time for jewelry, luxury goods, and accessories Web sites, as last-minute shoppers drove large increases in all three categories, according to this report in Women’s Wear Daily.
ComScore Inc, a digital activity monitoring firm, says the category drew the fourth-largest increase in total unique visitors in December compared to November, a 19% jump.